• Join over 1.2 million students every month
  • Accelerate your learning by 29%
  • Unlimited access from just £6.99 per month

Compensation - Human Resources Management

Extracts from this document...

Introduction

Tyrus Woods Human Resources Management Chapter 10 - Compensation Many surveys have shown that employees rank pay low in importance. For example, a large-scale survey found that only 2 percent of Americans declared that pay is a very important aspect of a job. Compensation is a very complicated topic with several aspects, requiring various decisions for companies to make. Chapter 10 focuses directly on the vast array of subject areas related to Compensation. First, Compensation is said to have three components, base compensation, the fixed pay an employee receives regularity by salary (weekly, monthly). Pay incentives is another compensation type designed to reward employees for good performance. Pay incentives may include bonuses and profit sharing. Finally, benefits make up the last of an employees total compensation. ...read more.

Middle

However, variable pay is often more rewarding for those higher salaried employees. For employees earning more than $750,000 in base pay receives 90 percent variable compensation while and employee earning $25,000 per year in base pay only receives 5% variable pay. Companies must determine where pay decisions will be made. Often Human Resources (HR) is the centralized source for payment/compensation decisions. In contrast, a decentralized system, pay decisions are delegated into the firm, commonly to unit managers. While there are pros and cons to centralization and decentralization of pay decisions, in most cases, it may be more appropriate to centralize pay decisions. This becomes especially important if the organization faces frequent legal challenges. Too much centralization however does not handle equity concerns very efficiently. ...read more.

Conclusion

However, there is much debate as to whether the minimum wage is enough to secure a decent standard of living. Santa Cruz, California requires a minimum hourly wage of $12.55 as posted in the Emerging Trends Magazine. The Equal Pay Act (EPA) was passed in 1963 as an amendment to the FLSA. The EPA requires men and women to be paid the same amount of money if they hold like positions and are basically equal in terms of skill, effort and responsibility. There are exceptions however which include more seniority, better job performance, greater quantity or quality of production and nigh shift differential. Compensation is a very complicated topic of discussion and a critical aspect of the success of any company. While many companies are out-sourcing to decrease the amount of expenses compensation will continue to be a major focus. Careful planning and skill must be utilized to design and implement an adequate compensation system. ...read more.

The above preview is unformatted text

This student written piece of work is one of many that can be found in our GCSE People in Business section.

Found what you're looking for?

  • Start learning 29% faster today
  • 150,000+ documents available
  • Just £6.99 a month

Not the one? Search for your essay title...
  • Join over 1.2 million students every month
  • Accelerate your learning by 29%
  • Unlimited access from just £6.99 per month

See related essaysSee related essays

Related GCSE People in Business essays

  1. Managing Human Resources in Marks & Spencer.

    Fig 1.4 they can see if they are able to plan to recruit. By looking at the education level of people Marks & Spencer, can see weather they are able to plan to employ people with the skills. Once Marks & Spencer has decided on the number and type of employees it needs in future.

  2. A REPORT INTO HUMAN RESOURCE MANAGEMENT AT SAINSBURY'S

    A job description lists the main tasks required in a job. Sainsbury's have job descriptions for every job they have from the caretaker to the managing director. The job description describes two types of information: it describes the tasks of the job and it describes the behaviour necessary to actually do these tasks satisfactorily.

  1. Total Quality Management

    The resulting matrix has a shape that looks like a house with a peaked roof. For this reason it is sometimes called the 'house of quality'. While it provides a method for showing where trade offs must be made, it does not take away the need for exercising technical and commercial judgment to make the trade offs.

  2. Human Resources.

    Aptitude tests It has become increasingly common for employers to expect job applicants to carry out tests to give a fuller picture of their ability to do the job applied for.

  1. Knowledge of the responsibilities covered by the human resources function with in the business, ...

    We are also addressing the needs of the Airedale Corridor, Shipley to Keighley and beyond." The internal staffing is based on the objectives of the Association of Colleges Briefing (in appendix Q). The Association of Colleges also work in conjunction with the Local Learning plus Skills Council.

  2. E1: Accurately describe the responsibilities covered by the human resources function in the ...

    It is not a necessary requirement for a particular job to be a member of a particular racial group. These include entertainers, actors, artist, waiters etc. * Disability Discrimination Act - This protects employees who are classified as disabled. A person who has got a physical or mental impairment have

  1. What is Human Resources Management.

    � A clear view of the important success factors concerning people, and how this must be addressed in the strategy. The Chief Executive Officer (CEO) with vision provides the leadership from the top, and there is clearly recognition of the importance of people.

  2. Human resources planning.

    It is important to monitor the performance of the workforce in Lisburn ICE to make sure the company remains competitive. Several methods of performance management would be appraisals, self-evaluation, performance reviews, target setting for workgroups and individuals. I can also keep performance at a high level by using training and

  • Over 160,000 pieces
    of student written work
  • Annotated by
    experienced teachers
  • Ideas and feedback to
    improve your own work